Figure 2.
Panel a plots predicted Green Transformation against Climate Risk. The horizontal axis ranges from 0 to 1.2. The vertical axis ranges from about negative 0.2 to 0.07. The curve rises from about 0.03 near climate risk 0, reaches a maximum of about 0.065 around 0.34, then declines. It crosses 0 near climate risk 0.8 and falls to about negative 0.18 at 1.2. Three vertical dashed lines appear near 0.02, 0.343 and 0.84. The first is labelled Lower Limit and the third Upper Limit. Panel b plots Average Marginal Effect against Climate Risk. The horizontal axis ranges from 0 to 1.5. The vertical axis ranges from about negative 0.6 to 0.2. Points with vertical error bars decrease almost linearly from about 0.23 at climate risk 0 to about negative 0.58 near 1.2. A horizontal reference line marks 0. A vertical dashed line near climate risk 0.34 intersects the series near 0 and is labelled Turning Point.Nonlinear relationship between climate risk and green transformation: (a) predicted quadratic relationship and (b) average marginal effects
Note(s): The vertical axis represents the predicted value of Green Transformation after controlling for other covariates. The nonzero baseline is due to the sample average levels of control variables and FEs